The Bombay High Court has declined to pass an interim order barring YES Bank from voting in the upcoming shareholders’ meeting of Dish TV on June 24. The promoters of Dish TV had filed a plea in the court seeking an injunction restraining the bank from participating in an Extraordinary General Meeting of Dish TV scheduled on June 24 and from exercising any right, including voting rights. The EGM has been called to seek approval for reappointment of Jawahar Goel as Managing Director from April 1, 2022 to March 31, 2025
“Contentious issues have been raised as to the legal capacity of the bank since the applicant has contended that the bank is not a nominee but an alleged transferee. The applicant has not made out a prima facie case nor is the balance of convenience favouring grant of relief,” the Bombay High Court ruled.
YES Bank, along with IDBI Trusteeship Services, owns 25.63 per cent stake in Dish TV through invocation of pledged shares. The promoters of Dish TV had cited a Supreme Court (SC) order, dated May 12, in a case between PTC India Financial Services and Venkateswarlu Kari where the top court said lenders or pledgees are not owners of shares and cannot exercise voting rights once the pledged shares are invoked.
The bank, however, argued that it is entitled to exercise voting rights and that it has been exercising voting rights in the past and hence the balance of convenience does not favour the applicant. The bank said the plea by Dish TV promoters is one more attempt to stall the bank’s participation in meeting, having failed to obtain an order earlier in December.
Dish TV and YES Bank have been at loggerheads ever since the bank sent a notice requesting for an extraordinary general meeting (EGM) of the shareholders to seek approval for its proposal to revamp the board of the company. The Hindu BusinessLine